Roark Capital Acquires Dave's Hot Chicken for $1 Billion

Roark Capital, the private equity firm that owns Subway and several other major restaurant brands, has acquired Dave's Hot Chicken in a deal valued at approximately $1 billion. Founded in 2017 by four childhood friends in Los Angeles, Dave's Hot Chicken has rapidly expanded to over 300 locations across the U.S., Canada, and the Middle East, with plans to open more than 155 additional locations this year. The chain is known for its Nashville-style hot chicken with varying spice levels, including an extremely hot "Reaper" option requiring a waiver. Drake, who invested in the chain in 2021, stands to gain significantly from the acquisition, with estimates suggesting his stake could have earned him between $100 million and $300 million. Despite the acquisition, leadership including CEO Bill Phelps will remain in place, focusing on menu innovation, food quality, and global growth to maintain the brand's unique appeal. Fans express mixed reactions, some worried about potential changes, but the company and Roark Capital emphasize plans for continued expansion and innovation.